Shanta Gold Limited : Update on Joint Venture A...

14 November 2011

                              Shanta Gold Limited

                       Update on Joint Venture Agreement

Shanta  Gold Limited ('Shanta  Gold' or 'the  Company') (AIM:SHG), the near-term
gold  producer with operations in Tanzania, and Great Basin Gold Limited ('GBG')
(GBG:  TSX;  GBG:  NYSE  Amex;  GBG:  JSE)  are pleased to announce that the due
diligence  process  for  the  exploration  and  joint venture agreement ('the JV
Agreement'), announced on 1 June 2011, has been concluded.

Both  parties  are  satisfied  that  all  suspensive  conditions  set out in the
contract have been met or have been waived.

Mr Ferdi Dippenaar, CEO of Great Basin Gold Limited, commented:

"I  am pleased the due diligence has  been successfully concluded. I believe the
combination of the Great Basin Gold and Shanta exploration teams' experience and
expertise can result in further low cost resources in the Lupa gold camp for the
benefit of both companies' shareholders."

Mr Walton Imrie, Executive Chairman of Shanta Gold, commented:

"As  Shanta Gold moves from explorer to producer,  first at New Luika at the end
of  December  2011 and  then  at  Singida  in  2013 we  believe  that the highly
prospective  areas,  which  fall  within  the  JV  Agreement,  provide excellent
opportunities  for Shanta  Gold to  grow beyond  its first  two mines. I am very
happy  to have the team from Great Basin  Gold working with Shanta Gold and look
forward to positive results from the highly experienced exploration teams."

Contacts:

Shanta Gold Limited
Walton Imrie
Tel: +27 (0) 82 444 2851

Gareth Taylor
Tel: [phone] 732 484

Nominated Adviser and Broker
Fairfax I.S. PLC
Tel: [phone]
Ewan Leggat / Laura Littley

Financial Relations
Tavistock Communications
Tel: [phone]
Emily Fenton/Ed Portman






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Source: Shanta Gold Limited via Thomson Reuters ONE

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